Correlation Between Franklin Liberty and Franklin Liberty
Can any of the company-specific risk be diversified away by investing in both Franklin Liberty and Franklin Liberty at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Franklin Liberty and Franklin Liberty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Liberty Investment and Franklin Liberty Low, you can compare the effects of market volatilities on Franklin Liberty and Franklin Liberty and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Franklin Liberty with a short position of Franklin Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Liberty and Franklin Liberty.
Diversification Opportunities for Franklin Liberty and Franklin Liberty
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Franklin is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Liberty Investment and Franklin Liberty Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Liberty Low and Franklin Liberty is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Franklin Liberty Investment are associated (or correlated) with Franklin Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Liberty Low has no effect on the direction of Franklin Liberty i.e., Franklin Liberty and Franklin Liberty go up and down completely randomly.
Pair Corralation between Franklin Liberty and Franklin Liberty
Given the investment horizon of 90 days Franklin Liberty is expected to generate 2.57 times less return on investment than Franklin Liberty. But when comparing it to its historical volatility, Franklin Liberty Investment is 1.41 times less risky than Franklin Liberty. It trades about 0.06 of its potential returns per unit of risk. Franklin Liberty Low is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,660 in Franklin Liberty Low on August 31, 2024 and sell it today you would earn a total of 931.00 from holding Franklin Liberty Low or generate 19.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.01% |
| Values | Daily Returns |
Franklin Liberty Investment vs. Franklin Liberty Low
Performance |
| Timeline |
| Franklin Liberty Inv |
| Franklin Liberty Low |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Liberty and Franklin Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Liberty and Franklin Liberty
The main advantage of trading using opposite Franklin Liberty and Franklin Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Liberty position performs unexpectedly, Franklin Liberty can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Franklin Liberty will offset losses from the drop in Franklin Liberty's long position.| Franklin Liberty vs. Franklin Liberty Short | Franklin Liberty vs. Goldman Sachs Access | Franklin Liberty vs. Franklin Templeton ETF | Franklin Liberty vs. Franklin Liberty Federal |
| Franklin Liberty vs. Franklin Liberty Short | Franklin Liberty vs. Franklin LibertyQ Equity | Franklin Liberty vs. iShares Currency Hedged | Franklin Liberty vs. Franklin LibertyQ Mid |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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